Julius Baer Settles With U.S. In Tax Evasion Probe

(RTTNews) - Major Swiss private banking firm Julius Baer Group Ltd. has agreed with U.S. Justice Department to pay $547 million to settle a lingering tax evasion investigation.

While a significant blow to the bank, the damage is far less than what analysts predicted earlier this year. Some estimated it would take up to $900 million to settle the probe.

The company has been under the close watch of the DOJ for the last four years, allegedly for helping affluent American clients to dodge tax. The Zurich based wealth manager had reportedly provided undeclared accounts to clients and that got secrecy protection as per Swiss law.

Earlier in June, after initial discussions with DOJ, the company had earmarked $350 million provision to settle the investigation and on Wednesday added an extra $197 million provision.

Department of Justice would issue a resolution with potential penalties by January 2016. The company said it expects profit for the year, even after adjustments. Subsequent to the announcement shares of Julius Baer were slightly up.

In May, Swiss multinational financial services holding company Credit Suisse was pleaded guilty in tax evasion case of U.S. clients and agreed to settle the case with a payment of $2.6 billion. Bank Leumi of Israel has agreed in last December to pay $400 million to help U.S. clients for maintaining hidden accounts. In 2009, UBS Group AG has agreed to pay $780 million for a settlement.